Wills, Trusts, and Estates Administration

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Using practical, self-contained chapters, this book provides an overview of wills, trusts, and estates and can easily support a variety of programs and audiences. Designed with flexibility in mind, it captures the complexities of the field, while maintaining a clear tone that is accessible and concise. Throughout the book, core concepts are reinforced by illustrations, charts, tables, and appellate court cases. This edition features updated case materials and statutes, new sample estate forms, additional end-of-chapter questions, new projects and an added chapter on alternate family lifestyles. Captures the complexities of the field, while maintaining a clear tone that is accessible and concise. Uses language and tone that is accessible to the novice, yet still engaging for the more critical reader. Case materials and statutes give readers the most up-todate legislation and decisions. Addresses contemporary family issues such as adoption, blended families, non-married couples, and grandparents raising children. Estate forms reflect the changes to the law and to practical practice issues. Specifically designed for the legal professional.

Preface

xi

Purpose and Need for a Will

1

(7)

Objectives

1

(1)

Why Most People Don't Have Wills

2

(1)

What Is a Will?

2

(1)

The Need for a Will

3

(3)

Death Taxes

3

(1)

Distribution of Wealth

4

(1)

Appointment of Guardians for Minors

4

(1)

Creation of a Testamentary Trust

5

(1)

Appointment of a Personal Representative

6

(1)

Funeral Arrangements and Organ Donation

6

(1)

Summary

6

(1)

Review Questions

7

(1)

Property

8

(18)

Objectives

8

(1)

Classification and Definition of Property

9

(2)

Real Property

9

(1)

Personal Property

10

(1)

Forms of Property---Who Owns What?

11

(7)

Owned in Severalty

11

(1)

Joint Ownership

11

(1)

Joint Tenancy

12

(2)

Tenants in Common

14

(3)

Tenancy by the Entirety

17

(1)

Community Property

18

(1)

Estates

18

(3)

Fee Simple

18

(1)

Life Estate

19

(1)

Tenancy for Years

20

(1)

Probate Versus Non-Probate Assets

21

(2)

Life Insurance

21

(1)

Pay-on-Death

22

(1)

Living Trusts

22

(1)

Life Estates

23

(1)

Joint Tenancy with Right of Survivorship

23

(1)

Summary

23

(1)

Review Questions

24

(1)

Projects

25

(1)

Testate or Intestate

26

(29)

Objectives

26

(1)

Testacy

27

(4)

Types of Dispositions

27

(2)

Abatement

29

(1)

Ademption

30

(1)

Anti-lapse

31

(1)

Methods of Distribution---Per Stirpes Versus Per Capita

31

(2)

Intestacy

33

(1)

Intestate Succession Defined

33

(1)

Intestate Succession Laws

34

(1)

Relationship of the Heir to the Decedent

34

(13)

Lineal and Collateral Consanguinity

35

(1)

Determining Degree of Kinship

35

(2)

Relationship by Affinity

37

(1)

Surviving Spouse

37

(2)

Adopted Children

39

(1)

Illegitimate Children

39

(1)

Half-Blood

39

(1)

Pretermitted Children

39

(1)

Pretermitted Spouse

40

(7)

Escheat

47

(2)

Other Family Rights

49

(2)

Homestead Exemption

49

(1)

Homestead Allowance

49

(1)

Exempt Property

49

(1)

Family Allowance

50

(1)

Surviving Spouse's Elective Share

50

(1)

Other Issues That Affect Distribution of the Estate

51

(1)

Homicide by Beneficiary or Heir

51

(1)

Simultaneous Death of Decedent and Beneficiary

52

(1)

Summary

52

(1)

Review Questions

53

(1)

Projects

53

(2)

The Will

55

(32)

Objectives

55

(1)

A Short History of Wills

56

(1)

Validity

56

(25)

Statutory Requirements

56

(1)

Intent and Capacity

57

(6)

Is the Will Written or Oral

63

(15)

Signature of the Testator

78

(2)

Witnesses

80

(1)

Notary Public---Self-Proof Clauses and Affidavits

80

(1)

Changing or Revoking a Will

81

(3)

Changing a Will

81

(1)

Revoking a Will

82

(2)

Joint and Mutual Wills

84

(1)

Will Contests

84

(1)

Summary

85

(1)

Review Questions

86

(1)

Projects

86

(1)

Will Preparation and Drafting

87

(18)

Objectives

87

(1)

Client Conference

88

(4)

Family Information

89

(1)

Client Assets and Liabilities

89

(1)

Other Important Information

90

(2)

Drafting

92

(8)

Opening Clause

92

(1)

Instruction to Pay Debts

93

(1)

Dispositive Provisions

93

(1)

Appointment of the Personal Representative

93

(1)

Personal Representative's Duties

93

(1)

Appointment of Guardian for Minor Children

93

(1)

Last Clauses in the Will

93

(1)

Self-Proof Affidavit

94

(6)

Execution of the Will

100

(1)

Where to Keep the Will after Execution

101

(2)

Summary

103

(1)

Projects

104

(1)

Advance Directives

105

(38)

Objectives

105

(1)

History of the Right to Die

106

(2)

Living Wills

108

(5)

Requirements for a Living Will's Validity

109

(4)

Do Not Resuscitate Orders

113

(3)

Health Care Surrogates and Proxies

116

(5)

Durable Powers of Attorney

121

(5)

Anatomical Gifts

126

(16)

By Will

127

(1)

By Signed Document

127

(1)

By Others

127

(15)

Summary

142

(1)

Review Questions

142

(1)

Projects

142

(1)

Trusts: Elements and Purpose

143

(46)

Objectives

143

(1)

Terminology Relating to Trusts

144

(1)

Trust Elements

144

(14)

Trustor

145

(1)

The Trustee

145

(1)

Trust Property

146

(12)

The Beneficiary

158

(1)

Trust Purpose

158

(1)

Trust Classifications

158

(13)

Express or Implied

158

(11)

Testamentary or Inter Vivos

169

(1)

Revocable or Irrevocable

170

(1)

Pourover Wills

170

(1)

Termination of a Trust

171

(1)

Drafting a Trust

171

(16)

Summary

187

(1)

Review Questions

187

(1)

Project

188

(1)

Specialized Trusts

189

(8)

Objectives

189

(1)

Spendthrift Trust

190

(1)

Sprinkling and Spray Trusts

190

(2)

Advantages of a Sprinkling Trust

191

(1)

Disadvantages

191

(1)

Marital Deduction Trust

192

(1)

Marital and Family Trusts

192

(1)

Qualified Terminable Interest Property (QTIP) Trust

192

(1)

Life Insurance Trust

193

(1)

Charitable Trusts

193

(2)

Charitable Remainder Trusts

194

(1)

Cy Pres Doctrine

194

(1)

Summary

195

(1)

Review Questions

196

(1)

Project

196

(1)

The Personal Representative

197

(10)

Objectives

197

(1)

Types of Personal Representatives

198

(2)

Named in the Will

198

(1)

Intestate Decedent

198

(1)

Successor Personal Representative

199

(1)

Administrator with Will Annexed

199

(1)

Special Administrator

199

(1)

Administrator Pendente Lite or Administrator Ad Litem

199

(1)

Appointment

200

(1)

Personal Representative's Duties

200

(4)

Bond

204

(1)

Removal of Personal Representative

204

(1)

Liability of the Personal Representative

205

(1)

Summary

205

(1)

Review Questions

206

(1)

Estate Administration

207

(34)

Objectives

207

(1)

Overview of the Probate Process

208

(1)

Preliminary Duties Of The Law Office

209

(2)

Obtaining the Death Certificate

209

(1)

Opening the Decedent's Safe Deposit Box

209

(1)

Searching the Decedent's Home or Office

209

(2)

Allowances

211

(1)

Guardianship of Minors

211

(1)

Small Estate Settlement

211

(1)

Formal Probate Administration

211

(13)

Petition

213

(3)

Notice to Other Interested Parties

216

(1)

Proof of Will

216

(1)

Bond and Testamentary Letters

217

(1)

Inventory

217

(1)

Estate Expenses, Debts, and Taxes

217

(7)

Distribution to Beneficiaries

224

(1)

Final Accounting

224

(1)

Ancillary Administration

224

(14)

Summary

238

(1)

Review Questions

239

(1)

Projects

240

(1)

Tax Considerations in Estate Administration

241

(13)

Objectives

241

(1)

The Fiduciary's Obligations

242

(2)

Notification of Decedent's Death to IRS

242

(1)

Employer Identification Number Application

242

(1)

Decedent's Final Income Tax Return

243

(1)

Decedent's Medical Expenses

243

(1)

State Income Tax Returns

244

(1)

Federal Income Tax Return of the Estate

244

(1)

The Estate Tax Return---Valuing the Estate

244

(3)

Decedent's Gross Estate

245

(2)

Form 706: Schedules Relating to Assets

247

(4)

Deductible Items

251

(1)

Form 706: Schedules Relating to Deductions

251

(1)

Form 706: Schedules Relating to Credits

252

(1)

Exclusion Amount

252

(1)

Summary

253

(1)

Review Questions

253

(1)

The Probate Court and Uniform Laws

254

(15)

Objectives

254

(1)

Jurisdiction

255

(9)

Registry with the Court Clerk

264

(1)

Uniform Probate Laws

265

(2)

Summary

267

(1)

Review Questions

267

(1)

Project

268

(1)

Alternate Family Lifestyles

269

(7)

The Right to Leave Your Property to Whomever You Want and the Right to Contract

271

(4)

Stepparents, Stepchildren and Grandchildren

275

(1)

Appendix A: Important Cases Concerning the Right to Die

276

(63)

Cruzan v. Director, MDH

276

(39)

Anderson v. St. Francis-St. George Hospital, Incorporated

315

(5)

Jeb Bush, v. Michael Schiavo

320

(16)

State of Oregon, Plaintiff-Appellee, v. John Ashcroft

336

(3)

Appendix B: Selected Wills of Famous People

339

(40)

The Will of Diana, Princess of Wales

339

(6)

The Will of Jerry Garcia (of the Grateful Dead)

345

(9)

Last Will and Testament of Warren E. Burger (Former U.S. Supreme Court Chief Justice)

354

(1)

The Will of Babe Ruth

355

(7)

The Last Will and Testament of William Shakespeare

362

(3)

Last Will and Testament of Francis Albert Sinatra Also Known as Frank Sinatra